Green Paper - A European Strategy for Sustainable, Competitive and Secure Energy {SEC(2006) 317}
Date: 2006-03-08
Institutions: European Commission
Subjects: competitiveness, energy policy, energy supply, environmental protection, research and development, sustainable development

COMMISSION OF THE EUROPEAN COMMUNITIES 

Brussels, 8.3.2006 
COM(2006) 105 final 

GREEN PAPER 

A European Strategy for Sustainable, Competitive and Secure Energy  

{SEC(2006) 317} 

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CONTENTS 

1. 

2. 

2.1. 

2.2. 

An energy strategy for Europe: balancing sustainable development, competitiveness 
and security of supply .................................................................................................. 3 

Six priority areas .......................................................................................................... 5 

Energy for growth and jobs in Europe: completing the internal European electricity 
and gas markets ............................................................................................................ 5 

An Internal Energy Market that guarantees security of supply: solidarity between 
Member States.............................................................................................................. 8 

Tackling security and competitiveness of energy supply: towards a more sustainable, 

2.3. 
efficient and diverse energy mix………………………………………………………9 

2.4. 

2.5. 

2.6. 

3. 

An integrated approach to tackling climate change ................................................... 10 

Encouraging innovation: a strategic European energy technology plan.................... 13 

Towards a coherent external energy policy ............................................................... 14 

Conclusions ................................................................................................................ 17 

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GREEN PAPER 

A European Strategy for Sustainable, Competitive and Secure Energy  

(Text with EEA relevance) 

1. 

AN  ENERGY  STRATEGY  FOR  EUROPE:  BALANCING  SUSTAINABLE  DEVELOPMENT, 
COMPETITIVENESS AND SECURITY OF SUPPLY 

Europe has entered into a new energy era.  

•  There is an urgent need for investment. In Europe alone, to meet expected energy demand 
and  to  replace  ageing  infrastructure,  investments  of  around  one  trillion  euros  will  be 
needed over the next 20 years. 

•  Our import dependency is rising. Unless we can make domestic energy more competitive, 
in the next 20 to 30 years around 70 % of the Union’s energy requirements, compared to 
50% today, will be met by imported products – some from regions threatened by insecurity.  

•  Reserves  are  concentrated  in  a  few  countries.  Today,  roughly  half  of  the  EU’s  gas 
consumption  comes  from  only  three  countries  (Russia,  Norway,  Algeria).  On  current 
trends, gas imports would increase to 80 % over the next 25 years.  

•  Global demand for energy is increasing. World energy demand – and CO2 emissions – is 
expected to rise by some 60% by 2030. Global oil consumption has increased by 20% since 
1994, and global oil demand is projected to grow by 1.6% per year.  

•  Oil and gas prices are rising. They have nearly doubled in the EU over the past two years, 
with  electricity  prices  following.  This  is  difficult  for  consumers.  With  increasing  global 
demand  for  fossil  fuels,  stretched  supply  chains  and  increasing  dependence  on  imports, 
high prices for oil and gas are probably here to stay. They may, however, trigger greater 
energy efficiency and innovation.  

•  Our  climate  is  getting  warmer.  According  to  the  Intergovernmental  Panel  on  Climate 
Change  (IPCC),  greenhouse  gas  emissions  have  already  made  the  world  0.6  degrees 
warmer. If no action is taken there will be an increase of between 1.4 and 5.8 degrees by 
the  end  of  the  century.  All  regions  in  the  world  –  including  the  EU  –  will  face  serious 
consequences for their economies and ecosystems. 

•  Europe has not yet developed fully competitive internal  energy markets.  Only  when such 
markets  exist  will  EU  citizens  and  businesses  enjoy  all  the  benefits  of  security  of  supply 
and  lower  prices.  To  achieve  this  aim,  interconnections  should  be  developed,  effective 
legislative  and  regulatory  frameworks  must  be  in  place  and  be  fully  applied  in  practice, 
and  Community  competition  rules  need  to  be  rigorously  enforced.  Furthermore,  the 
consolidation  of  the  energy  sector  should  be  market  driven  if  Europe  is  to  respond 
successfully to the many challenges it faces and to invest properly for the future.  

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This is the new energy landscape of the 21st century. It is one in which the world’s economic 
regions  are  dependent  on  each  other  for  ensuring  energy  security  and  stable  economic 
conditions, and for ensuring effective action against climate change. 

The effects of this landscape are felt directly by everyone. Access to energy is fundamental to 
the  daily  lives  of  every  European.  Our  citizens  are  affected  by  higher  prices,  threats  to  the 
security  of  energy  supply  and  changes  to  Europe’s  climate.  Sustainable,  competitive  and 
secure energy is one of the basic pillars of our daily life.  

This  landscape  requires  a  common  European  response.  Heads  of  State  and  Government,  at 
their summits in October and December 2005, recognised this and asked the Commission to 
take  this  forward.  Recent  events  have  underlined  that  this  challenge  must  be  met.  An 
approach based solely on 25 individual energy policies is not enough.  

The EU has the tools to help. It is the world’s second largest energy market, with over 450 
million  consumers.  Acting  together,  it  has  the  weight  to  protect  and  assert  its  interests.  The 
EU has not just the scale but also the policy range to tackle the new energy landscape. The EU 
leads  the  world  in  demand  management,  in  promoting  new  and  renewable  forms  of  energy, 
and in the development of low carbon technologies. If the EU backs up a new common policy 
with  a  common  voice  on  energy  questions,  Europe  can  lead  the  global  search  for  energy 
solutions.  

Europe  must  act  urgently:  it  takes  many  years  to  bring  innovation  on  stream  in  the  energy 
sector.  It  must  also  continue  to  promote  diversity  –  of  energy  type,  country  of  origin  and 
transit. In this way it will create the conditions for growth, jobs, greater security and a better 
environment. Work has been progressing on these issues since the Commission’s 2000 Green 
Paper on Security of Energy Supply, but given recent developments on energy markets, a new 
European impetus is needed.  

This Green Paper puts forward suggestions and options that could form the basis for a new 
comprehensive  European  energy  policy.  The  Spring  European  Council  and  the  European 
Parliament are invited to react to this Paper, which should also spark a wide-ranging public 
debate. The Commission will then table concrete proposals for action. 

This Green Paper identifies six key areas where action is necessary to address the challenges 
we face. The most fundamental question is whether there is agreement on the need to develop 
a  new,  common  European  strategy  for  energy,  and  whether  sustainability,  competitiveness 
and security should be the core principles to underpin the strategy. 

From that flow the following questions:  

1. 

Competitiveness  and  the  internal  energy  market.  Is  there  agreement  on  the 
fundamental importance of a genuine single market to support a common European 
strategy  for  energy?  How  can  barriers  to  implementing  existing  measures  be 
removed? What new measures should be taken to achieve this goal? How can the EU 
stimulate the substantial investments necessary in the energy sector? How to ensure 
that all Europeans enjoy access to energy at reasonable prices, and that the internal 
energy market contributes to maintaining employment levels? 

2. 

Diversification  of  the  energy  mix.  What  should  the  EU  do  to  ensure  that  Europe, 
taken as a whole, promotes the climate-friendly diversification of energy supplies? 

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3. 

4. 

5. 

6. 

Solidarity. Which measures need to be taken at Community level to prevent energy 
supply crises developing, and to manage them if they do occur?  

change,  balancing 

Sustainable development. How can a common European energy strategy best address 
environmental  protection, 
climate 
competitiveness  and  security  of  supply?  What  further  action  is  required  at 
Community  level  to  achieve  existing  targets?  Are  further  targets  appropriate?  How 
should  we  provide  a  longer  term  secure  and  predictable  investment  framework  for 
the further development of clean and renewable energy sources in the EU?  

the  objectives  of 

Innovation  and  technology:  What  action  should  be  taken  at  both  Community  and 
national level to ensure that Europe remains a world leader in energy technologies? 
What instruments can best achieve this?  

External policy. Should there be a common external policy on energy, to enable the 
EU  to  speak  with  a  common  voice?  How  can  the  Community  and  Member  States 
promote  diversity  of  supply,  especially  for  gas?  Should  the  EU  develop  new 
partnerships with its neighbours, including Russia, and with the other main producer 
and consumer nations of the world? 

Developing a European energy policy will be a long term challenge. This  needs  a clear but 
flexible  framework:  clear  in  that  it  represents  a  common  approach  endorsed  at  the  highest 
level,  flexible  in  that  it  needs  periodic  updating.  As  a  foundation  for  this  process  the 
Commission  therefore  proposes  that  a  Strategic  EU  Energy  Review  be  presented  to  the 
Council and Parliament on a regular basis, covering the issues identified in this Green Paper. 
This  would  constitute  a  stocktaking  and  action  plan  for  the  Spring  European  Council, 
monitoring  progress  and  identifying  new  challenges  and  responses  on  all  aspects  of  energy 
policy. 

2. 

SIX PRIORITY AREAS 

2.1. 

Energy  for  growth  and  jobs  in  Europe:  completing  the  internal  European 
electricity and gas markets 

Sustainable, competitive and secure energy will not be achieved without open and competitive 
energy markets, based on competition between companies looking to become European-wide 
competitors  rather  than  dominant  national  players.  Open  markets,  not  protectionism,  will 
strenghten  Europe  and  allow  it  to  tackle  its  problems.  A  truly  competitive  single  European 
electricity  and  gas  market  would  bring  down  prices,  improve  security  of  supply1  and  boost 
competitiveness.  It  would  also  help  the  environment,  as  companies  react  to  competition  by 
closing energy inefficient plant. 

In  July  2007,  with  very  few  exceptions,  every  EU  consumer  will  have  the  legal  right  to 
purchase electricity and gas from any supplier in the EU. This offers a major opportunity for 
Europe.  But  whilst  much  has  been  done  to  create  a  competitive  market,  work  is  not  yet 
complete. Many markets remain largely national, and dominated by a few companies. Many 
differences  remain  between  Member  States’  approaches  to  market  opening,  preventing  the 
development of a truly competitive European market – including powers of regulators, level 

1 

“Lessons from liberalised electricity markets”. IEA, 2005. 

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of  independence  of  network  operators  from  competitive  activities,  grid  rules,  balancing  and 
gas storage regimes. 

By the end of 2006, the second electricity and gas Directives will have been implemented by 
all Member States and the Commission will have completed its competition inquiry into the 
functioning  of  the  European  gas  and  electricity  markets.  A  final  decision,  based  on  a  full 
impact  assessment,  will  then  be  made  on  any  additional  legislative  measures  needed:  in 
particular to ensure non-discriminatory network access, adequate available network capacity, 
liquidity on gas and electricity markets and effective regulation. However, it is already clear 
that five core areas need particular attention: 

(i) 

A European grid 

Consumers  need  a  single  European  grid  for  a  real  European  electricity  and  gas  market  to 
develop.  This  can  be  done  by  ensuring  common  rules  and  standards  on  issues  that  affect 
cross-border trade. Progress is being made on these issues, but it is too slow. 

A  European  grid  code  could  encourage  harmonised,  or  at  least  equivalent,  grid  access 
conditions. This would take the form of common rules on regulatory issues that affect cross-
border trade. Experts are taking a first step forward on a regional basis, in particular energy 
regulators through the Council of European Energy Regulators and the European Regulators 
Group.  But  further  and  quicker  progress  is  necessary  before  all  business  and  private 
consumers will be able to purchase their electricity and gas from suppliers in other Member 
States.  To  this  end,  the  Commission  will  examine  (i)  what  needs  to  be  done  to  address  the 
differences between existing equivalent powers and independence for national regulators and 
(ii)  whether  existing  forms  of  collaboration  between  national  regulators  and  national  grid 
operators are adequate, or whether a closer level of collaboration is needed – with for example 
a  European  energy  regulator  to  look  at  cross-border  issues.  Such  a  regulator  could  have 
decision-making powers for common rules and approaches such as a European grid code and 
would work together with the network operators. A European Centre for Energy Networks 
could also bring the network operators together in a formal body to assist work on developing 
a European Grid Code.  

(ii) 

A priority interconnection plan 

At  the  Barcelona  European  Council  in  2002,  the  Heads  of  State  and  Government  agreed  to 
increase  minimum  interconnection  levels  between  Member  States  to  10%.  Progress  has  not 
been  satisfactory.  There  can  be  no  truly  competitive  and  single  European  market  without 
additional physical capacity: this is particularly vital for countries such as Ireland and Malta 
or for the Baltic States, which remain an “energy island”, largely cut off from the rest of the 
Community.  Equally,  additional  electricity  interconnection  capacity  is  necessary  between 
many  areas  and  in  particular  between  France  and  Spain  to  permit  real  competition  between 
these two countries to develop. Similarly there is a need for new investment in infrastructure 
in gas markets. In many Member States, action needs to be taken to free up capacity reserved 
for  former  incumbents  under  electricity  and  gas  long  term  contracts.  Interconnection  is  a 
crucial mechanism for solidarity.  

Private  and  public  investments  in  infrastructure  need  to  be  stimulated  and  authorisation 
procedures  accelerated.  The  greater  the  interconnection  in  the  European  electricity  grid,  the 
lower the need for spare capacity and, in time, the lower the costs. This is important at a time 
when Europe’s previous overcapacity is becoming history. The Commission will by the end 

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of 2006 identify the individual measures that it considers important at the level of Member 
States. Further actions at Community level will also be identified, such as more effective use 
of the Trans European Network instruments. 

Finally,  relations  with  Switzerland  are  important  in  this  respect,  which  is  a  major  transit 
country for electricity. 

(iii) 

Investment in generation capacity 

To  replace  ageing  electricity  generation  capacity  and  to  meet  demand,  the  EU  will  need 
substantial investment over the next 20 years. This includes capacity to deal with peaks. The 
necessary reserve must exist in order to prevent disruptions at times of high demand and to 
serve  as  back-up  for  intermittent  renewable  energy  sources.  For  timely  and  sustainable 
investments,  a  properly  functioning  market  is  needed,  giving  the  necessary  price  signals, 
incentives, regulatory stability and access to finance. 

(iv) 

A level-playing field: the importance of unbundling 

Significant differences persist in the level and effectiveness of unbundling of transmission and 
distribution from competitive activities. This means that in practice national markets are open 
to fair and free competition to differing degrees. The provisions of the second electricity and 
gas Directives on unbundling need to be fully implemented, not just in their letter but also in 
their  spirit.  If  progress  to  a  level  playing  field  does  not  result,  further  measures  at 
Community level should be considered.  

(v) 

Boosting the competitiveness of European industry 

One  of  the  most  important  objectives  of  the  internal  energy  market  is  to  promote  the 
competitiveness  of  EU  industry  and  thus  contribute  to  growth  and  jobs.  Industrial 
competitiveness  requires  a  well-designed,  stable  and  predictable  regulatory  framework, 
respectful  of  market  mechanisms.  Energy  policy  therefore  needs  to  favour  cost-effective 
options  and  be  based  on  a  thorough  economic  analysis  of  different  policy  options  and  their 
impact  on  energy  prices.  Secure  availability  of  energy  at  affordable  prices  is  crucial. 
Integrated  and  competitive  electricity  and  gas  markets  with  the  minimum  of  disruption  are 
essential. The new High–Level Group on Energy, Environment and Competitiveness will play 
an important role in identifying ways to promote the competitiveness of all sectors of affected 
industry. 

This requires considering, for example, what is the best way to accommodate the legitimate 
needs  of  energy  intensive  industry  whilst,  at  the  same  time,  respecting  competition  rules. 
Conclusions on this issue should be contained in the report on the internal market scheduled 
for  the  end  of  2006.  In  addition,  consideration  needs  to  be  given  on  how  best  to  ensure 
effective  coordination  between  the  Commission,  national  energy  regulators  and  national 
competition authorities. 

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2.2. 

An  Internal  Energy  Market  that  guarantees  security  of  supply:  solidarity 
between Member States 

(i) 

Enhancing security of supply in the internal market 

Liberalised and competitive markets help security of supply by sending the right investment 
signals to industry participants. But for this competition to work effectively, the market needs 
to be transparent and predictable.  

The physical security of Europe’s energy infrastructure against risks from natural catastrophe 
and terrorist threat, as well as security against political risks including interruption of supply 
is  critical  to  predictability.  The  development  of  smart  electricity  networks,  demand 
management and distributed energy generation could all help at times of sudden shortage. 

This points to several areas for possible future action: 

•  The  establishment  of  a  European  Energy  Supply  Observatory  as  soon  as  possible  to 
monitor  the  demand  and  supply  patterns  on  EU  energy  markets,  identifying  likely 
shortfalls in infrastructure and supply at an early stage and complementing on an EU level 
the work of the International Energy Agency. 

•  Improved network security through increased collaboration and exchange of information 
between  transmission  system  operators  in  defining  and  agreeing  common  European 
security  and  reliability  standards.  A  more  formal  grouping  of  transmission  system 
operators, reporting to the EU energy regulators and to the Commission, could build on 
the  work  already  started  in  the  wake  of  the  2003  blackouts.  This  could  develop  into  a 
European  Centre  for  Energy  Networks,  with  powers  to  collect,  analyse  and  publish 
relevant information, as well as to implement schemes approved by the relevant regulatory 
institutions. 

•  With  respect  to  the  physical  security  of  infrastructure,  two  main  actions  merit  further 
consideration.  Firstly,  a  mechanism  could  be  developed  to  prepare  for  and  ensure 
rapid  solidarity  and  possible  assistance  to  a  country  facing  difficulties  following 
damage  to  its  essential  infrastructure.  Secondly,  common  standards  or  measures 
might be taken to protect infrastructure. 

(ii) 

Rethinking  the  EU’s  approach  to  emergency  oil  and  gas  stocks  and  preventing 
disruptions  

Oil is a global market and major supply disruptions, even if local or regional, require a global 
response.  The  release  of  emergency  stocks  organised  by  the  IEA  in  response  to  Hurricane 
Katrina  worked  well.  Any  stronger  Community  action  in  this  area  should  therefore  be 
compatible  with  this  global  mechanism.  This  might  still  point  to  a  more  coordinated 
Community  response  in  the  event  of  an  IEA  decision  to  release  stocks.  In  particular,  this 
would  be  helped  by  a  new  Commission  legislative  proposal  ensuring  the  publication  on  a 
more  regular  and  transparent  basis  the  state  of  Community  oil  stocks,  to  contribute 
improving transparency on oil markets. 

Furthermore, the existing Directives on gas and electricity security of supply should be re-
examined  to  ensure  they  can  deal  with  potential  supply  disruptions.  Recent  experience  has 
raised important questions, including whether Europe’s gas stocks can meet the challenge of 

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shorter  term  supply  disruptions.  This  review  should  also  consider  whether  the  appropriate 
signals are being given to encourage the necessary investment in Europe’s gas and electricity 
markets in the years ahead, including investments in security of supply and infrastructure to 
enable  mutual  assistance.  This  could,  inter  alia,  include  a  new  legislative  proposal 
concerning gas stocks to ensure that the EU can react to shorter term emergency gas supply 
disruptions in a manner that ensures solidarity between Member States, whilst taking account 
of the different potential for storage in different parts of the EU.  

2.3.  Tackling  security  and  competitiveness  of  energy  supply:  towards  a  more 
sustainable, efficient and diverse energy mix 

Each  Member  State  and  energy  company  chooses  its  own  energy  mix.  However,  choices 
made by one Member State inevitably have an impact on the energy security of its neighbours 
and  of  the  Community  as  a  whole,  as  well  as  on  competitiveness  and  the  environment.  For 
example: 

•  decisions  to  rely  largely  or  wholly  on  natural  gas  for  power  generation  in  any  given 
Member  State  have  significant  effects  on  the  security  of  supply  of  its  neighbours  in  the 
event of a gas shortage; 

•  decisions  by  Member  States  relating  to  nuclear  energy  can  also  have  very  significant 
consequences on other Member States in terms of the EU’s dependence on imported fossil 
fuels and CO2 emissions. 

The  Strategic  EU  Energy  Review  would  offer  a  clear  European  framework  for  national 
decisions on the energy mix. It should analyse all the advantages and drawbacks of different 
sources  of  energy,  from  indigenous  renewable  energy  sources  such  as  wind,  biomass  and 
biofuels, small hydro and energy efficiency to coal and nuclear, and the knock-on effects of 
these changes for the EU as a whole. This could be based on a standard methodology.  

Coal and lignite, for example, presently account for around one-third of the EU’s electricity 
production:  climate  change  means  that  this  is  only  sustainable  if  accompanied  by 
commercialised carbon sequestration and clean coal technologies on an EU level.  

The Review should also allow a transparent and objective debate on the future role of nuclear 
energy in the EU, for those Member States concerned. Nuclear power, at present, contributes 
roughly one-third of the EU’s electricity production and, whilst careful attention needs to be 
given  to  the  issues  of  nuclear  waste  and  safety,  represents  at  present  the  largest  source  of 
largely carbon free energy in Europe. The EU can play a useful role in ensuring that all costs, 
advantages and drawbacks of nuclear power are identified for a well-informed, objective and 
transparent debate. 

Furthermore, it might be  appropriate to agree  an  overall strategic  objective, balancing the 
goals of sustainable energy use, competitiveness and security of supply. This would need to 
be developed on the basis of a thorough impact assessment and provide a benchmark on the 
basis  of  which  the  EU’s  developing  energy  mix could be judged and would  help the EU to 
stem the increasing dependence on imports. For example, an objective might be to aim for a 
minimum  level  of  the  overall  EU  energy  mix  originating  from  secure  and  low-carbon 
energy  sources.  Such  a  benchmark  would  reflect  the  potential  risks  of  import  dependency, 
identify an overall aspiration for the long term development of low carbon energy sources and 
permit the identification of the essentially internal measures necessary to achieve these goals. 

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It would combine the freedom of Member States to choose between different energy sources 
and the need for the EU as a whole to have an energy mix that, overall, meets its core energy 
objectives.  The  Strategic  EU  Energy  Review  could  serve  as  the  tool  for  the  proposal  and 
subsequent monitoring of any such objective agreed by the Council and Parliament. 

2.4. 

An integrated approach to tackling climate change 

Effective  action  to  address  climate  change  is  urgent  and  the  EU  must  continue  to  lead  by 
example and, above all, work towards the widest possible international action. Europe needs 
to  be  ambitious  and  must  act  in  an  integrated  manner  that  promotes  the  EU’s  Lisbon 
objectives.  

The  EU  is  already  at  the  forefront  of  approaches  to  decouple  economic  growth  from 
increasing  energy  consumption.  Its  action  has  combined  robust  legislative  initiatives  and 
energy  efficiency  programmes  with  encouragement  to  competitive  and  effective  renewable 
energy. However, the EU’s commitment to fighting climate change is a long-term one.  

In order to limit the forthcoming rise of global temperatures at the agreed target of maximum 
of 2 degrees above pre-industrial levels, global greenhouse gas emissions should peak no later 
than  2025,  and  then  be  reduced  by  at  least  15%,  but  perhaps  as  much  as  50%  compared  to 
1990  levels.  This  huge  challenge  means  that  Europe  must  act  now,  in  particular  on  energy 
efficiency and renewable energy. 

Action on renewables and energy efficiency, besides tackling climate change, will contribute 
to security of energy supply and help limit the EU’s growing dependence on imported energy. 
It  could  also  create  many  high-quality  jobs  in  Europe  and  maintain  Europe’s  technological 
leadership in a rapidly growing global sector. 

In  this  respect,  the  EU  Emissions  Trading  Scheme  creates  a  flexible  and  cost-efficient 
framework for more climate friendly energy production. The full review of the EU Emissions 
Trading Scheme gives an opportunity for expanding and further improving the functioning of 
the  scheme.  In  addition,  the  EU  Emissions  Trading  Scheme  provides  the  nucleus  for  a 
gradually expanding global carbon market, hereby giving European business a head-start. 

(i) 

Making more from less: leading on energy efficiency 

An effective energy efficiency policy does not mean sacrificing comfort or convenience. Nor 
does  it  mean  reducing  competitiveness.  In  fact  an  effective  policy  in  this  area  means  the 
opposite;  making  cost-effective  investments  in  order  to  reduce  the  waste  of  energy,  thereby 
increasing standards of living and saving money, and using price signals, that would lead to 
more responsible, economical and rational use of energy. Market-based instruments, including 
the Community energy tax framework, can be a very efficient tool in this respect. 

Although Europe is already one of the world’s most energy efficient regions, it can go much 
further.  In  its  2005  Green  Paper  on  Energy  Efficiency,  the  Commission  showed  that  up  to 
20% of EU energy use could be saved: equivalent to spending as much as € 60 billion less on 
energy, as well as making a major contribution to energy security and creating up to a million 
new jobs in the sectors directly concerned. 

One  useful  instrument  in  this  respect  is  the  EU’s  cohesion  policy,  which  identifies  as 
objectives supporting energy efficiency, the development of renewable and alternative energy 

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sources  and  investments  in  networks  where  there  is  evidence  of  market  failure.  The 
Commission calls upon Member States and regions, when preparing their National Strategic 
Reference Frameworks and operational programmes for 2007-2013, to make effective use of 
the possibilities provided for by cohesion policy in support of the present strategy. 

The Commission will this year propose an Action Plan on Energy Efficiency to realise this 
potential. This effort needs consistent support and determination at the very highest political 
level  throughout  Europe.  Many  of  the  tools  are  in  national  hands,  such  as  grants  and  tax 
incentives, and the national level holds the key to convincing the public that energy efficiency 
can bring them real savings. But the EU level can have a decisive impact and the Action Plan 
will propose concrete measures to reach this 20% potential by 2020.  

Examples of possible action include: 

–  Long-term 

targeted  energy  efficiency  campaigns, 

including  efficiency 

in 

buildings, notably public buildings. 

–  A  major  effort  to  improve  energy  efficiency  in  the  transport  sector  and  in 

particular to improve rapidly urban public transport in Europe’s major cities. 

–  Harnessing financial instruments to catalyze investments by commercial banks in 

energy-efficiency projects and companies providing energy services. 

–  Mechanisms  to  stimulate  investment  in  energy  efficiency  projects  and  energy 

services companies. 

–  A  Europe-wide  “white  certificates”  system,  tradable  certificates,  which  would 
enable companies that exceed energy efficiency minimum standards to “sell” this 
success to others that have failed to meet these standards. 

–  To guide consumers and manufacturers, more focus will need to be put on rating 
and showing the energy performance of the most important energy-using products 
including appliances, vehicles, and industrial equipment. It may be appropriate to 
set minimum standards in this area.  

Finally, energy efficiency needs to become a global priority. The Action Plan can serve as a 
“launch pad” to catalyse similar action worldwide, in close collaboration with the IEA and the 
World Bank. The EU should propose and promote an international agreement on energy 
efficiency,  involving  both  developed  and  developing  countries  and  the  expansion  of  the 
Energy Star Agreement. 

(ii) 

Increasing the use of renewable energy sources  

Since 1990, the EU has been engaged in an ambitious and successful plan to become world 
leader  in  renewable  energy.  To  take  one  example,  the  EU  has  now  installed  wind  energy 
capacity equivalent to 50 coal fired power stations, with costs halved in the past 15 years. The 
EU’s renewable energy market has an annual turnover of € 15 billion (half the world market), 
employs some 300,000 people, and is a major exporter. Renewable energy is now starting to 
compete on price with fossil fuels. 

In 2001, the EU agreed that the share of electricity from renewable energy sources in the EU 
consumption should reach 21% by 2010. In 2003, it agreed that at least 5.75 % of all petrol 

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and diesel should be bio-fuels by 2010. A number of countries are showing a rapid increase in 
renewable  energy  use  through  supportive  national  policy  frameworks.  But  under  current 
trends, the EU will miss both targets by 1-2 percentage points. If the EU is to meet its longer 
term  climate  change  goals  and  reduce  its  dependence  on  fossil  fuel  imports,  it  will  need  to 
meet  and  indeed  go  beyond  these  targets.  Renewable  energy  is  already  the  third  electricity 
generation  source  worldwide  (after  coal  and  gas)  and  has  the  potential  to  grow  still  further, 
with all the environmental and economic advantages that would follow.  

For renewable energy to fulfil its potential, the policy framework needs to be supportive and 
in  particular  to  stimulate  increasing  competitiveness  of  such  energy  sources  while  fully 
respecting  the  competition  rules.  While  some  sources  of  low-carbon  indigenous  energy  are 
already  viable,  others,  such  as  off-shore  wind,  wave  and  tidal  energy  need  positive 
encouragement to be realised.  

The full potential of renewable energy will only be realised through a long-term commitment 
to develop and install renewable energy. In parallel to the Strategic EU Energy Review, the 
Commission  will  bring  forward  a  Renewable  Energy  Road  Map.  This  would  cover  key 
issues for an effective EU policy on renewables:  

–  an active programme with specific measures to ensure that existing targets are met; 

–  consideration of which targets or objectives beyond 2010 are necessary, and the nature 
of such targets, in order to provide long term certainty for industry and investors, as well as 
the active programmes and measures needed to make this a reality. Any such targets could 
be complemented by extended operational targets on electricity, fuels and possibly heating; 

–  a  new  Community  Directive  on  heating  and  cooling,  complementing  the  Community 

energy saving framework; 

–  a detailed short, medium and long term plan to stabilise and gradually reduce the EU’s 
dependence on imported oil. This should build on the existing Biomass Action Plan2 and 
the Strategy for Biofuels3; 

–  Research, demonstration and market replication initiatives to bring clean and renewable 

energy sources closer to markets. 

The Road Map would be based on a thorough impact assessment, assessing renewable energy 
sources against the other options available.  

(iii) 

Carbon capture and geological storage 

Carbon  capture  and  geological  storage,  in  combination  with  clean  fossil  fuel  technologies 
provides  a  third  opportunity  of  near  zero  emission  technology.  Today  it  can  already  be 
economically  used  for  enhanced  oil  or  gas  recovery.  It  can  be  particularly  important  for 
countries which choose to continue the use of coal as a secure and abundant energy source.  

However,  this  technology  needs  a  stimulus  to  create  the  necessary  economic  incentives, 
provide  legal  certainty  for  the  private  sector  and  ensure  environmental  integrity.  R&D  and 

2 
3 

Communication from the Commission – “Biomass Action Plan” - COM(2005) 628, 7.12.2005. 
Communication from the Commission – “An EU Strategy for Biofuels” - COM(2006) 34, 8.2.2006. 

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large scale demonstration projects are needed to bring the technology towards reduced costs, 
and market-based incentives such as emissions trading can also make this a profitable option 
for the longer term. 

2.5. 

Encouraging innovation: a strategic European energy technology plan  

The development and deployment of new energy technologies is essential to deliver security 
of supply, sustainability and industrial competitiveness.  

Energy related research has contributed strongly to energy efficiency (e.g. in car engines) and 
to  energy  diversity  through  renewable  energy  sources.  However  the  magnitude  of  the 
challenges ahead requires increased efforts.  

This necessitates a long term commitment. As an example research has allowed efficiency of 
coal  power  stations  to  be  improved  by  30%  in  the  last  thirty  years.  The  Research  Fund  for 
Coal  and  Steel  has  contributed  to  funding  this  at  EU  level.  Further  technological 
developments would see significant reductions in CO2 emissions.  

Research  can  also  bring  commercial  opportunities.  Energy  efficient  and  low  carbon 
technologies  constitute  a  rapidly  growing  international  market  that  will  be  worth  billions  of 
Euros in the coming years. Europe must ensure that its industries are world leaders in these 
new generations of technologies and processes.  

The  7th  Framework  Programme  recognises  that  there  is  no  single  solution  to  our  energy 
problems,  but  deals  with  a  wide  portfolio  of  technologies:  renewable  energy  technologies, 
making  clean  coal  and  carbon  capture  and  sequestration  an  industrial  reality,  developing 
economically  viable  biofuels  for  transports,  new  energy  vectors  such  as  hydrogen  and 
environmentally  friendly  energy  usage  (e.g.  fuel  cells)  and  energy  efficiency;  as  well  as 
advanced  nuclear  fission  and  the  development  of  fusion  through  the  implementation  of  the 
ITER Agreement. 

The  EU  needs  an  appropriately  resourced  strategic  energy  technology  plan.  This  should 
accelerate the development of promising energy technologies, but should also help to create 
the conditions to bring such technologies efficiently and effectively to the EU and the world 
markets.  Research  in  areas  of  high  energy  use  –  housing,  transport,  agriculture,  agro-
industries,  and  materials  –  should  also  be  addressed.  The  proposed  European  Institute  of 
Technology (EIT) could play an important role in helping achieve this.  

The  plan  should  strengthen  the  European  research  effort  to  prevent  overlaps  in  national 
technology and research programmes and to put the focus on agreed EU-level goals. Industry-
led European technology platforms on biofuels, hydrogen and fuel cells, photovoltaics, clean 
coal  and  electricity  networks  help  to  develop  commonly  agreed  research  agendas  and 
deployment strategies.  

The  EU  needs  to  consider  ways  to  finance  a  more  strategic  approach  to  energy  research, 
taking  further  steps  towards  integrating  and  coordinating  Community  and  national  research 
and  innovation  programmes  and  budgets.  Building  upon  the  experience  and  output  of 
European  technology  platforms,  high-level  stakeholders  and  decision-makers  need  to  be 
mobilised  to  develop  an  EU  vision  for  the  transformation  of  the  energy  system  and  to 
maximise the efficiency of the overall research effort. 

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Where  appropriate,  particularly  to  develop  “leading  markets”  for  innovation,  Europe  should 
act through large-scale integrated actions with the necessary critical mass, mobilising private 
business,  Member  States  and  the  European  Commission  in  public/private  Partnerships  or 
through the integration of National and Community Energy Research Programmes. The long-
term energy-related ITER project and the internationally coordinated Generation IV initiative 
aiming at designing even safer and more sustainable reactors, are examples of concerted EU 
actions to achieve specific goals. Europe should also invest in other possible future forms of 
energy,  such  as  hydrogen  and  fuel  cells,  carbon  capture  and  storage,  large-scale  renewable 
technologies such as concentrated solar thermal, as well as even longer term prospects such as 
methane hydrates. Consideration should also be given on how to mobilise the resources of the 
European Investment Bank to promote close to market R&D in this area and how to enhance 
cooperation in areas of global concern. 

Actions  to  accelerate  technology  development  and  drive  down  the  costs  of  new  energy 
technologies must be complemented by policy measures to open the market and to ensure the 
market  penetration  of  existing  technologies  that  are  effective  in  addressing  climate  change. 
Competing  against  entrenched  technologies  and  huge  locked-in  investments  in  the  current 
energy system, largely based on fossil fuels and centralised generation, new technologies face 
high entry barriers. The EU Emissions Trading Scheme, green certificates, feed-in tariffs and 
other  measures  can  ensure  that  the  implementation  of  environmentally  friendly  energy 
production,  conversion  and  use  is  financially  viable.  Such  measures  can  provide  powerful 
policy signals to the market and create a stable climate in which industries can take the long-
term  investment  decisions  required.  The  Intelligent  Energy-Europe  Programme  will  also 
provide the necessary tools and mechanisms to overcome the non technical barriers to the take 
up of new and effective energy technologies. 

2.6. 

Towards a coherent external energy policy 

The energy challenges facing Europe need a coherent external policy to enable Europe to play 
a  more  effective  international  role  in  tackling  common  problems  with  energy  partners 
worldwide.  A  coherent  external  policy  is  essential  to  deliver  sustainable,  competitive  and 
secure energy. It would be a break from the past, and show Member States’ commitment to 
common solutions to shared problems.  

The first step is to agree at Community level on the aims of an External Energy Policy and 
on the actions needed at both Community and national level to achieve it. The effectiveness 
and coherence of the EU’s external energy policy is dependent upon the progress with internal 
policies and, in particular, the creation of the internal market for energy. The abovementioned 
Strategic EU Energy Review would serve as the basis for establishing this common vision. 
This  would  constitute  a  stocktaking  and  action  plan  for  the  European  Council,  monitoring 
progress  and  identifying  new  challenges  and  responses.  Follow-up  should  take  the  form  of 
regular formal political level discussions at Community level, involving Member States and 
the Commission in a manner to be developed. It would offer a single reference point, with an 
appropriate  institutional  format,  for  all  actors  in  European  energy  at  both  Community  and 
national  level.  This  would  permit  not  only  the  effective  exchange  of  information  but  also  a 
real  co-ordination  of  approach:  it  would  enable  the  EU,  in  effect,  “to  speak  with  the  same 
voice”.  

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The  benefits  of  this  approach  for  the  external  dimension  would  be  particularly  strong.  It 
should cover a number of key goals and instruments: 

(i) 

A clear policy on securing and diversifying energy supplies 

Such  a  policy  is  necessary  both  for  the  EU  as  a  whole  and  for  specific  Member  States  or 
regions, and is especially appropriate for gas. To this end, the above mentioned Review could 
propose  clearly  identified  priorities  for  the  upgrading  and  construction  of  new 
infrastructure  necessary  for  the  security  of  EU  energy  supplies,  notably  new  gas  and  oil 
pipelines and liquefied natural gas (LNG) terminals as well as the application of transit and 
third  party  access  to  existing  pipelines.  Examples  include  independent  gas  pipeline  supplies 
from the Caspian region, North Africa and the Middle East into the heart of the EU, new LNG 
terminals  serving  markets  that  are  presently  characterised  by  a  lack  of  competition  between 
gas suppliers, and Central European oil pipelines aiming at facilitating Caspian oil supplies to 
the EU through Ukraine, Romania and Bulgaria. In addition, the Review could acknowledge 
the  concrete  political,  financial  and  regulatory  measures  needed  to  actively  support  the 
undertaking  of  such  projects  by  business.  The  new  EU-Africa  Strategy,  envisaging 
interconnections of energy systems as a priority area, could also help Europe to diversify its 
oil and gas supply sources. 

(ii) 

Energy partnerships with producers, transit countries and other international actors 

The EU and its energy partners are interdependent. This is reflected at bilateral and regional 
level  in  a  number  of  specific  EU  energy  dialogues  with  a  number  of  producer  and  transit 
countries4. Equally, energy issues are a growing feature of the EU’s political dialogues with 
other  major  energy  consumers  (such  as  the  US,  China  and  India),  including  through  multi-
lateral fora like the G8. These dialogues should be set within the common vision offered by 
the Review.  

(a) 

Dialogue with major energy producers/suppliers 

The  EU  has  an  established  pattern  of  relations  with  major  international  energy  suppliers 
including  OPEC  and  the  Gulf  Cooperation  Council.  A  new  initiative  is  particularly 
opportune  with  regard  to  Russia,  the  EU’s  most  important  energy  supplier.  The  EU,  as 
Russia’s  largest  energy  buyer,  is  an  essential  and  equal  partner  in  this  relationship.  The 
development of a common external energy policy should mark a step change in this energy 
partnership at both Community and national level. A true partnership would offer security and 
predictability for both sides, paving the way for the necessary long-term investments in new 
capacity. It would also mean fair and reciprocal access to markets and infrastructure including 
in particular third party access to pipelines. Work should start on an energy initiative based on 
these  principles.  Subsequently  the  results  could  be  integrated  into  the  framework  of  EU-
Russia relations due to replace the current EU-Russia Partnership and Cooperation agreement 
in  2007.  In  addition,  efforts  should  be  intensified  in  the  G8  to  secure  rapid  ratification  by 
Russia  of  the  Energy  Charter  Treaty  and  conclusion  of  the  negotiations  on  the  Transit 
Protocol. 

4 

Notably Russia, Norway, Ukraine, the Caspian basin, the Mediterranean countries, OPEC and the Gulf 
Co-operation Council. 

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(b) 

Developing a pan-European Energy Community 

In line with the European Neighbourhood Policy and its Action Plans (and in addition to the 
current  work  undertaken  through  Partnership  and  Cooperation  Agreements  and  Association 
Agreements),  the  EU  has  for  some  time  been  engaged  in  widening  its  energy  market  to 
include  its  neighbours  and  to  bring  them  progressively  closer  to  the  EU’s  internal  market. 
Creating a “common regulatory space” around Europe, would imply progressively developing 
common  trade,  transit  and  environmental  rules,  market  harmonisation  and  integration.  This 
would create a predictable and transparent market to stimulate investment and growth, as well 
as  security  of  supply,  for  the  EU  and  its  neighbours.  Existing  political  dialogues,  trade 
relations  and  Community  financing  instruments  can  be  further  developed  and,  for  other 
partners, there is potential for new agreements or other types of initiative.  

For  example,  by  building  on  the  Energy  Community  Treaty  with  partners  in  South-East 
Europe,  as  well  as  the  development  of  the  EU-Maghreb  electricity  market  and  the  EU-
Mashrek gas market, a pan-European energy Community could be created both through a 
new  Treaty,  and  through  bilateral  agreements.  Certain  essential  strategic  partners,  including 
Turkey  and  Ukraine,  could  be  encouraged  to  join  the  South  East  European  Energy 
Community Treaty. The Caspian and Mediterranean countries are important gas suppliers 
and transit routes. Algeria’s increasing importance as a gas supplier to the EU could point to a 
specific energy partnership.  

In  addition,  as  one  of  the  EU’s  most  important strategic energy partner, attention should  be 
given  to  facilitating  Norway’s  efforts  to  develop  resources  in  the  high  north  of  Europe  in  a 
sustainable  manner  as  well  as  facilitating  its  entry  into  the  South  East  Europe  Energy 
Community. 

This  framework  would  also  offer  a  clearer  framework  to  promote  best  long-term  use  of 
Community investment through Trans-European Energy Networks and their extensions 
to  third  country  partners  and  to  maximise  the  impact  on  energy  security  of  EU  resources 
devoted to the  energy  sector in  third  countries. This  is  of  particular  importance  for  the  new 
Neighbourhood  Instrument  and  for  EIB  and  EBRD  financing.  In  this  context,  twinning 
programmes and loan subsidies for external strategic energy infrastructure are essential. 

(iii) 

Reacting effectively to external crisis situations 

Consideration  should  be  given  on  how  best  to  react  to  external  energy  crises.  Recent 
experiences with respect to both oil and gas have shown the need  for the Community  to be 
able to react quickly and in a fully co-ordinated manner to such events. The EU has no formal 
instrument  dealing  with  external  energy  supplies.  This  could  be  addressed  by  a  new  more 
formal,  targeted  instrument  to  deal  with  emergency  external  supply  events.  This  might 
involve,  for  example,  a  monitoring  mechanism  to  provide  early  warning  and  to  enhance 
response capabilities in the event of an external energy crisis. 

(iv) 

Integrating energy into other policies with an external dimension 

At  the  political  level,  a  common  European  external  energy  policy  will  permit  a  better 
integration  of  energy  objectives  into  broader  relations  with  third  countries  and  the  policies 
which support them. That means increasing the focus in relations with global partners facing 
similar  energy  and  environmental  challenges  –  such  as  the  US,  Canada,  China,  Japan  and 
India  –  on  issues  such  as  climate  change,  energy  efficiency  and  renewable  sources, 

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research  and  development  of  new  technologies,  global  market  access  and  investment 
trends, with better results in multilateral fora such as the UN, the IEA and the G8. If these 
countries reduce the use of fossil fuels, it will also be beneficial for Europe’s energy security. 
The EU could significantly step up bilateral and multi-lateral cooperation with these countries 
with the objective of encouraging the rational use of energy worldwide, of reducing pollution 
and encouraging industrial and technological cooperation on the development, demonstration 
and  deployment  of  energy  efficient  technologies,  renewable  energy  sources  and  clean  fossil 
fuel technologies with carbon capture and geological storage. In particular, greater efforts 
need  to  be  made  towards  widening  the  geographic  scope of the  EU  Emissions Trading 
Scheme  and,  as  mentioned  above,  as  a  first  step  the  EU  should  propose  and  promote  an 
international  agreement  on  energy  efficiency.  In  addition,  more  focus  could  be  given  to 
technological cooperation, in particular with other energy consuming countries. 

Similarly, there is scope to make better use of trade policy tools to promote promote goals 
such as non-discriminatory energy transit and the development of a more secure investment 
climate. The EU should press for a better respect of existing WTO rules and principles in this 
field, and bilateral or regional initiatives should build on these. Such agreements can include 
provisions  on  market  opening,  investment,  regulatory  convergence  on  issues  such  as  transit 
and access to pipelines, and competition. Reinforced market-based provisions on energy and 
trade–related  energy  issues  would  thus  be  incorporated  in  the  EU’s  existing  and  future 
agreements with third countries.  

(v) 

Energy to promote development 

For developing countries, access to energy is a key priority, and Sub-Saharan Africa has the 
lowest access in the world to modern energy services. At the same time, only 7% of Africa’s 
hydropower  potential  is  tapped.  The  EU  should  promote  a  twin-track  approach  through  the 
European  Union  Energy  Initiative  and  through  raising  the  profile  of  energy  efficiency  in 
development  programmes.  Focusing  on  developing  renewable  energy  and  micro-generation 
projects, for instance, could help many countries reduce reliance on imported oil and improve 
the  lives  of  millions.  The  implementation  of  the  Kyoto  Protocol  clean  development 
mechanism could spur investment in such energy projects in developing countries. 

3. 

CONCLUSIONS 

This  Green  Paper  has  set  out  the  new  energy  realities  facing  Europe,  outlined  questions  for 
debate and suggested possible actions at the European level. In taking the debate forward, it is 
essential to act in an integrated way. Each Member State will make choices based on its own 
national  preferences.  However,  in  a  world  of  global  interdependence,  energy  policy 
necessarily has a European dimension. 

Europe’s energy policy should have three main objectives: 

•  Sustainability  :  (i)  developing  competitive  renewable  sources  of  energy  and  other  low 
carbon  energy  sources  and  carriers,  particularly  alternative  transport  fuels,  (ii)  curbing 
energy demand within Europe, and (iii) leading global efforts to halt climate change and 
improve local air quality. 

•  Competitiveness: (i) ensuring that energy market opening brings benefits to consumers and 
to the economy as a whole, while stimulating investment in clean energy production and 

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energy  efficiency,  (ii)  mitigating  the  impact  of  higher  international  energy  prices  on  the 
EU  economy  and  its  citizens  and  (iii)  keeping  Europe  at  the  cutting  edge  of  energy 
technologies. 

•  Security of supply: tackling the EU’s rising dependence on imported energy through (i) an 
integrated approach – reducing demand, diversifying the EU’s energy mix with greater use 
of  competitive  indigenous  and  renewable  energy,  and  diversifying  sources  and  routes  of 
supply  of  imported  energy,  (ii)  creating  the  framework  which  will  stimulate  adequate 
investments  to  meet  growing  energy  demand,  (iii)  better  equipping  the  EU  to  cope  with 
emergencies,  (iv)  improving  the  conditions  for  European  companies  seeking  access  to 
global resources, and (v) making sure that all citizens and business have access to energy. 

To achieve these objectives, it is important to put them in an overall framework, in the first 
Strategic  EU  Energy  Review.  This  could  be  augmented  with  a  strategic  objective  which 
balanced  the  goals  of  sustainable  energy  use,  competitiveness  and  security  of  supply;  for 
example,  by  aiming  for  a  minimum  level  of  the  overall  EU  energy  mix  to  come  from 
secure and low-carbon energy sources. This would combine the freedom of Member States 
to  choose  between  different  energy  sources  and  the  need  for  the  EU  as  a  whole  to  have  an 
energy mix that, overall, meets its three core energy objectives. 

This Green Paper puts forward a number of concrete proposals to meet these three objectives.  

1. 

The EU needs to complete the internal gas and electricity markets. Action could 
include the following measures: 

–  The development of a European Grid, including through a European grid code. A 
European  regulator  and  a  European  Centre  for  Energy  Networks  should  also  be 
considered.  

–  Improved interconnections.  

–  Creating the framework to stimulate new investment.  

–  More effective unbundling.  

–  Boosting  competitiveness, 

including 

through  better  coordination  between 

regulators, competition authorities and the Commission.  

These must be addressed as a priority; the Commission will reach final conclusions 
on any additional measures that need to be taken to ensure the rapid completion of 
genuinely  competitive,  European-wide  electricity  and  gas  markets,  and  present 
concrete proposals by the end of this year.  

2. 

The EU needs to ensure that its internal energy market guarantees security of 
supply and solidarity between Member States. Concrete measures should include: 

–  A  review  of  the  existing  Community  legislation  on  oil  and  gas  stocks,  to  focus 

them on today’s challenges. 

–  A  European  energy  supply  observatory,  enhancing  transparency  on  security  of 

energy supply issues within the EU.  

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–  Improved  network  security  through  increased  cooperation  between  network 

operators and possibly a formal European grouping of network operators. 

–  Greater physical security of infrastructure, possibly through common standards.  

–  Improved transparency on energy stocks at the European level.  

The  Community  needs  a  real  Community-wide  debate  on  the  different  energy 
sources, including costs and contributions to climate change, to enable us to be sure 
that,  overall,  the  EU’s  energy  mix  pursues  the  objectives  of  security  of  supply, 
competitiveness and sustainable development.  

Europe  needs  to  deal  with  the  challenges  of  climate  change  in  a  manner 
compatible  with  its  Lisbon  objectives.  The  Commission  could  propose  the 
following measures to the Council and Parliament: 

(i)  A clear goal  to prioritise energy  efficiency, with  a goal of saving 20% of the 
energy  that  the  EU  would  otherwise  use  by  2020  and  agreeing  a  series  of 
concrete measures to meet this objective, including:  

–  Efficiency campaigns, including on buildings. 

–  Harnessing financial instruments and mechanisms to stimulate investment. 

–  A renewed effort for transport.  

–  A Europe-wide “white certificates” trading system.  

–  Better  information  on  the  energy  performance  of  some  appliances,  vehicles,  and 

industrial equipment and possibly, minimum performance standards.  

(ii)  Adopt a long-term road-map for renewable energy sources, including: 

–  A renewed effort to meet existing targets.  

–  Consideration of which targets or objectives beyond 2010 are necessary.  

–  A new Community Directive on heating and cooling. 

–  A  detailed  plan  to  stabilise  and  gradually  reduce  the  EU’s  dependence  on 

imported oil.  

–  Initiatives to bring clean and renewable energy sources closer to markets. 

A  strategic  energy  technology  plan,  making  best  use  of  Europe’s  resources, 
building on European technology platforms and with the option of joint technology 
initiatives  or  joint  undertakings  to  develop  leading  markets  for  energy  innovation. 
This should be presented as soon as possible to the European Council and Parliament 
for endorsement. 

A common external energy policy. In order to react to the challenges of high and 
volatile energy prices, increasing import dependency, strongly growing global energy 

3. 

4. 

5. 

6. 

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demand and global warming, the EU needs to have a clearly defined external energy 
policy and to pursue it, at the same time at both national and Community level, with 
a single voice. To this end the Commission proposes: 

–  Identifying  European  priorities  for  the  construction  of  new  infrastructure 

necessary for the security of EU energy supplies.  

–  Developing a pan-European Energy Community Treaty.  

–  A new energy partnership with Russia.  

–  A  new  Community  mechanism  to  enable  rapid  and  co-ordinated  reaction  to 

emergency external energy supply situations impacting EU supplies. 

–  Deepening energy relations with major producers and consumers.  

–  An international agreement on energy efficiency.  

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